The U.S. Small Business Administration (SBA) is undergoing a dramatic shift under newly appointed Administrator Kelly Loeffler, aligning itself with the broader policies of the Trump administration. In a move that could have significant consequences for communities like Whittier, which is located in a sanctuary county within a sanctuary state, the SBA is set to relocate regional offices out of cities that adopt immigrant-friendly policies. This decision underscores the growing federal stance of treating sanctuary jurisdictions as being in open defiance of national immigration laws.
The Impact on Cities Located in Sanctuary Counties Like Whittier
Whittier, situated in Los Angeles County, operates within one of the most well-known sanctuary jurisdictions in the nation. While Whittier itself is not a self-declared sanctuary city, it is still subject to the broader sanctuary policies of the county and state. California’s sanctuary laws have long been a flashpoint in federal-state relations, with the state government refusing to cooperate with federal immigration enforcement efforts.
The SBA’s move to withdraw from sanctuary cities like Denver signals a broader intent to penalize such jurisdictions economically—an approach that could reverberate throughout Los Angeles County and its cities, including Whittier. If regional SBA offices in sanctuary cities are being relocated, it raises the question: Could Los Angeles, San Francisco, and other major Californian SBA locations face the same fate? If so, small businesses in Whittier that rely on SBA resources, such as loans and grants, may find it more difficult to access the assistance they need.
A Broader Federal Response to Sanctuary Policies?
The SBA’s planned relocation of offices is part of a larger pattern of federal pressure on sanctuary jurisdictions. By pulling resources from cities that refuse to comply with federal immigration law, the administration is signaling that it views these jurisdictions as being in open rebellion against the federal government. Sanctuary policies have long been framed as local resistance to federal immigration enforcement, but this latest move suggests that Washington is beginning to respond with tangible economic consequences.
Loeffler’s directive does not stop at relocation. It also includes new measures that could disproportionately impact communities located in sanctuary counties, like Whittier:
Restricting SBA assistance to individuals without legal authorization to live in the country – Sanctuary counties often provide social and economic support to undocumented residents, but the new SBA policy ensures they will not have access to small business loans or aid.
Cutting the 8(a) disadvantaged business program from 15% to 5% – This reduction in federal set-asides for disadvantaged businesses will likely hurt minority-owned businesses in places like Whittier, where many entrepreneurs come from immigrant backgrounds.
A renewed push for “Made in America” initiatives – While this may benefit some businesses, others that depend on international trade or have diverse supply chains may struggle under new restrictions.
A crackdown on fraud and financial audits – While combating fraud is a justifiable goal, the administration’s approach suggests a focus on clawing back funds, which could disproportionately impact businesses in sanctuary counties that may have received pandemic-era SBA loans.
Federal vs. Local Power Struggles: A Dangerous Precedent?
The SBA’s shift aligns with a broader federal strategy of marginalizing sanctuary jurisdictions by withdrawing funding, support, and resources. Whittier, like many other cities in Los Angeles County, faces the possibility of reduced federal engagement and economic investment, forcing local businesses to seek alternative means of support.
Moreover, this approach could set a dangerous precedent. If federal agencies begin systematically withdrawing services from sanctuary counties, it could escalate tensions between state and federal governments. While California’s leaders have historically resisted federal attempts to strong-arm the state into compliance, losing access to federal small business assistance could put significant pressure on local economies.
What This Means for Whittier’s Small Businesses
Small businesses in Whittier already operate within a high-cost environment, and SBA programs provide crucial financial lifelines. Losing access to regional SBA offices could mean longer wait times, reduced federal engagement, and fewer opportunities for local entrepreneurs to access funding. Minority-owned businesses, which already face systemic barriers, may bear the brunt of these changes.
For now, Whittier remains in a wait-and-see position. If Denver’s office is relocated, it could be a trial balloon for similar moves in other sanctuary jurisdictions—including Los Angeles County. As the federal government continues to ramp up pressure on sanctuary states, cities like Whittier will need to prepare for potential economic and political fallout.
In the long term, this confrontation over sanctuary policies may force local leaders and business owners to make tough choices: comply with federal immigration enforcement to retain access to funding, or double down on sanctuary protections and risk losing federal support. Whichever path Whittier takes, the battle between sanctuary jurisdictions and the federal government appears far from over.